Bali Positioned as International Financial Centre to Boost Real Sector and Infrastructure Investment

Bank Indonesia believes Bali has significant potential to be developed as an International Financial Centre (IFC) ecosystem alongside Jakarta. This strategic move is expected to be realised following the enactment of the Financial Sector Development and Strengthening Law (P2SK) to boost investment financing into the real sector. Achris Sarwani, Head of the Bank Indonesia Representative Office for Bali Province, stated that implementing this international financial ecosystem requires regulatory readiness and legal provisions for business transactions that align with global standards. “After this P2SK Law is enacted, we hope to soon see how it is implemented. One option, though not the only one, is an ecosystem called the International Financial Centre. There will be specific laws and legal provisions governing business transactions there,” Achris said. The selection of Bali as a strong candidate for the IFC location is due to its ready infrastructure and cultural appeal, which are already integrated with the tourism sector. The integration of business and tourism is seen as a powerful draw for global investors. Achris added that the presence of this ecosystem is expected to manifest as Foreign Direct Investment (FDI) in the real sector, not just portfolio transactions in financial markets. This investment is crucial for promoting equitable development in Bali, particularly by directing projects to the North Bali region to reduce the heavy concentration of activity in the south. A key focus of the required infrastructure development is the provision of modern mass transportation to address the island’s increasingly critical traffic congestion.